212 | HOW TO WRITE A BUSINESS PLAN
S
ervice businesses have simple
financial projections. Usually, fixed
expenses are equal to total costs
and the owner’s objective is to make
sure that sales revenue exceeds fixed
expenses. Investors and lenders look for
proof of the plan’s revenue forecasts,
since the plan succeeds or fails on that
forecast. The following plan contains a
thorough projection of sales revenue and
a discussion of why the owner thinks the
revenue forecasts are achievable.
This plan contains a different way of
looking at a Cash Flow Forecast. I think
this different presentation is easy to follow.
You can use this new format or the format
in Chapter 7.
I lost track of the owner and don’t know
whether she was successful. The plan is
for a small personnel agency located in a
city of about 70,000, which specializes in
placing people in secretarial, clerical, and
word processing positions. Basically, all
you need to get started in this business is
a state license (in many states), a desk, and
a telephone. However, as in most other
businesses, to do well you also need to
know the business intimately, be able to
manage your time effectively, have good
sales ability, and be convinced that you
will succeed.
This plan would benefit from a more
thorough presentation of its components,
and I recommend that your plan take the
more thorough route.CD-ROM
The text of this Business Plan for
a Small Service Business is included on the
CD-ROM at the back of this book.